I posted this reply on their facebook page (sorry for the cross posting, but i think its worth repeating here)

This is such a disappointment... shame on you Astro for getting our expectations up with those teasers... please do the right thing and proceed to introduce Discovery HD to Malaysia...

I tend to agree with you TallJustin... i was astonished at how good the PQ is for streaming episodes of LOST on ABC.com (but unfortunately if you try it from Malaysia, you get this : You appear to be outside the United States or its territories. Due to international rights agreements, we only offer this video to viewers located within the United States and its territories.)

It appeared to be at least 720p, maybe better, ... and very little lag... if an IPTV settop box downloads the whole episode or buffers a bit before it begins playing, it should work very well... so looks like the technology is there to do it without the expense of putting a satellite in orbit and maintaining it there... Hope Astro tries to hold on to their subscriber base by providing lots of good content ..

I agree with you Neb... i was thinking the same thing... looked like their switch wasn't up to par.... whenever they switch camera feed, the pixelation would briefly appear...then the picture would be ok until they switched cameras again...